Market Brief: Inflation Cools, Tesla Surges

Author

Market Maverick
December 29, 2024

Welcome to Your Weekend Edition of Market Mavericks.

Good morning!
Markets may be unpredictable, but your updates shouldn’t be. Grab your coffee, because here’s everything you need to know in 5 minutes or less.

Fast Five Highlights

  1. Dow Jumps 150 Points: Major indices rally as investors digest softer inflation data.

  2. Crude Oil Nears $80: Energy sector gains as inventories tighten.

  3. Tech Leads the Charge: Nasdaq up 1.2%, driven by strong semiconductor earnings.

  4. Euro Slides: Eurozone growth forecasts cut, sending EUR/USD to a 6-month low.

  5. Tesla Breaks Records: Deliveries surpass estimates, stock gains 4% pre-market.

Market Brief

Indices:

  • S&P 500: +0.8% at 4,550

  • Dow Jones: +0.5% at 34,200

  • Nasdaq: +1.2% at 14,800

Commodities:

  • Crude Oil: $79.50/barrel (+1.4%)

  • Gold: $1,920/oz (-0.6%)

  • Silver: $23.10/oz (+0.8%)

Sectors:

  • Winners: Technology (+1.5%), Consumer Discretionary (+1.2%)

  • Losers: Utilities (-0.7%), Healthcare (-0.3%)

Pre-Market Movers:

  • Up: NVIDIA (+2.5%), Tesla (+4.2%)

  • Down: Pfizer (-1.8%), Meta (-0.9%)

Man Who Called Nvidia at $1.10 Says Buy This Now...

In 2004, one man called Nvidia before just about anyone knew it existed. Now, he says a new company could become the next to soar like Nvidia. The biggest tech firms are loading up on shares. Nvidia, Apple, Google, AMD, Intel, and Samsung are all invested in this company. It also signed a MAJOR deal with Apple to get its AI tech into the iPhone and iMac. And its tech is also found in products from Samsung and Google.

Big Picture Analysis

"Markets Are Breathing Easier"
Investors cheered this week’s CPI report, which showed inflation cooling to 3.1%, the lowest level in two years.

Key drivers:

  • Jobs Data: U.S. unemployment claims fell to 200K, hinting at labor market resilience.

  • China Stimulus: Beijing announced fresh measures to boost its slowing economy, lifting Asian markets.

Expert Take:
“The combination of lower inflation and a strong labor market is exactly what the Fed wants to see,” says Mark Zandi, Chief Economist at Moody’s.

What We’re Watching

  • Monday: Earnings from Apple and ExxonMobil.

  • Tuesday: U.S. retail sales data.

  • Wednesday: Fed minutes release for insights into policymakers’ next steps.

Deep Dive: Tesla’s Record-Breaking Quarter

Tesla’s Q4 delivery numbers shattered expectations, reaching 490,000 units, a 12% increase YoY.

  • Bull Case: Expansion into emerging markets and cost efficiencies in battery production.

  • Bear Case: Rising competition from Chinese EV makers could cap future growth.

Outlook: Analysts expect Tesla to remain a leader in EV innovation but warn of valuation risks if growth slows.

Headlines

  • JP Morgan Acquires Fintech Startup Plaid

  • OPEC+ Talks Loom as Oil Prices Surge

  • AI Boom: Microsoft and Google Compete for Enterprise Dominance

Crypto Section

Bitcoin hovers near $28,000, up 2% this week as regulatory clarity boosts sentiment.

  • Top Movers: Solana (+5%), Chainlink (+4%)

  • News to Watch: SEC proposes new rules for stablecoin issuers.

Daily Share

Trending on X (formerly Twitter): #InflationRelief
A viral thread breaks down the impact of the latest CPI numbers on housing, wages, and beyond.